07/04
JOINT REPORT OF THE PORTFOLIO HOLDER FOR RESOURCES AND THE PORTFOLIO
HOLDER FOR SUSTAINABLE DEVELOPMENT ENVIRONMENT AND PLANNING POLICY AND THE PORTFOLIO
HOLDER FOR ECONOMIC DEVELOPMENT, UK AND EU, REGIONAL ISSUES
Date: DECISION NOT TO BE TAKEN BEOFRE
1 MARCH 2004
Title : VENTNOR HAVEN - PROPOSED
FISHERMENS WHARF AND FISH FOOD PROCESSING PLANT
SUMMARY/PURPOSE
1.
To consider the granting of a long lease, subject to
planning permission being obtained for development at Ventnor Haven.
CONFIDENTIAL/EXEMPT
ITEMS
2.
None.
BACKGROUND
3.
Under the development programme agreed by the
Councils Executive on the 26 February 2002 for the new Ventnor Haven and
the application for funding to the South East Economic Development Agency for
the regeneration of Ventnor Eastern Esplanade, outline proposals are put
forward for the development of fish meat food processing at Ventnor Haven estimated
to cost £486,000. The original haven
funding submission to SEEDA stressed the important role it would fulfil in
supporting the local fisheries industry alongside leisure and coastal
protection interests. The proposal as
submitted by Blakes will meet this requirement as well as both safeguarding
existing employment and creating new employment opportunities. Discussions with operators in the fishing
industry have gained wide acceptance in terms of justification for numerous
reasons.
4.
As Members will know, fishing in Ventnor has been long
established and Blakes of Ventnor, being a locally established family business,
have knowledge and experience working in this industry over several generations
and are now promoting this development idea.
5.
It is fair to say that whilst the industry has been
under some threat, the area of Ventnor does enjoy some excellent fishing
grounds that have a good prospect of sustaining the food supply and primarily
it is a matter of getting that food to market as economically as possible,
taking full advantage of the strategic location of the haven on the Islands
southern coast.
6.
In addition, with the supply of some 60% of Island
cooked crab coming from the Ventnor crab beds, which in turn supports some 30
associated jobs with the potential for growth in the future, then the scheme
does have regeneration potential. There
are also health and safety benefits through relocating the existing commercial
operation from the beach and this will also help the development of tourism in
the area, by improving the amenity to the beach.
7.
Blakes of Ventnor have been in discussions with
Officers from Planning and Coastal Management for over two years now, as to the
best way forward and best location for a food processing plant and whilst the
operator is concerned to secure functionality, good quality design in this
location will be required.
8.
A detailed case study outlining the prospect for
success and construction costs to secure this plant is available upon request
and that study concludes that:
Although the fishing industry generally can be seen to be suffering from something of a decline, the market for the product has seen a sharp increase. In 1998 the market for prepared crab was virtually non-existent. At the present time, it was worth some £130,000 per annum. With the improved landing facilities and processing building, projected turnover for the first year is £180,000 leading to £800,000 in six years time. It is clear that this will also require significant expansion in terms of employment.
STRATEGIC
CONTEXT
9.
The development of Ventnor Haven and its adjoining
land aims to support the local economy through new tourism related amenity and
the promotion of business in the area to increase employment
opportunities. The proposed transfer of
this site satisfies a number of the Councils Corporate Plan priorities, namely
encouraging job creation and economic prosperity as well as protecting the
Islands environment in a sustainable way.
CONSULTATION
10.
The proposals to develop this processing plant have
been shared widely throughout the Council, as well as with local Members and
the Town Council. In addition, the
development has been shared with numerous partners, not least the Regional Development
Agency, local businesses and the Department of the Environment, Food and Rural
Affairs.
FINANCIAL/BUDGET
IMPLICATIONS
11.
The letting of this lease represents new income to the
Council and as such, new budget resources.
The terms for the lease are as follows:
The terms shall be for 125 years and a rent of £12,500 per annum,
subject to indexation every five years or 2.5% or turnover of business as
audited, whichever is the greater.
The lease will be subject to the grant of detailed planning consent and the
first year of the lease shall be rent free.
The other terms of the lease shall provide that the tenant will be able
to moor boats in connection with his business to the south and east sides of
the building and the west side of the building will be for the Harbour Master
to administer. Sub-letting as to part
of the property will be prohibited and use shall be in accordance with approved
planning permission as approved by the Council as landowner in addition to planning
authority. Under-letting part of the
property will be prohibited and each party shall be responsible for own cost of
transfer.
As part of the proposed development it will be necessary to relocate the
access road to the Eastern Esplanade and the Coastal Manager is happy to give
an undertaking that the relocation of this road and the provision of services
can be found within existing resources.
12.
There will be an additional financial liability upon
the Council should there be a necessity for a deed of release/indemnity
insurance as referred to below, the cost of which will fall upon the proposed
leaseholder who has been made aware.
13.
A public notice has been placed in the County Press
requesting contact from any interested parties and no responses have been
received.
LEGAL IMPLICATIONS
14.
There are little problems with regard to the land
involved and there may also need to be negotiations in respect of a covenant
release or alternatively indemnity insurance.
15.
It will be necessary for a complex legal document to
be drawn up incorporating a lease with an option agreement, together with
possibly a deed of release or covenant and the purchaser to progress a detailed
planning application at the earliest opportunity, A report on the title of this site has been passed to the
proposed leaseholder.
OPTIONS
16.
This is a total unique opportunity and whilst the
Council could seek to advertise the site in the hope of finding another
competing developer to bring forward a comparable scheme, it is extremely
unlikely that any such competing proposal exists. As such, the Council has a choice of doing nothing and allowing
the fishing industry to progress independent of this site and whilst the
operator concerned could choose to pursue another landing place on the Island,
it is more than likely that the best alternative and most viable opportunity
would be to relocate all crab fish landing volumes to Portsmouth.
17.
Because this is a unique situation, it is not possible
to say in absolute market transaction terms that the proposed leased can be
bettered. Given the guidance available
to Officers that there is a reasonable prospect of turnover for this business
reaching some £500,000 per annum and that the turnover percentage accruing to
the Council as landowner has been properly negotiated between the parties in
terms of market transactions, then by fixing the initial rent at £12,500 per
annum with indexation or 2½% of turnover, then in the view of the Head of
Property Services, the Council can then be reasonably assured this arrangement
represents the best consideration that may be achieved. Details of the proposal will also be tested
by way of public notice.
EVALUATION/RISK
MANAGEMENT
18.
Whilst the Council has gone to some lengths in undertaking
numerous briefing sessions, preparations of bids, support to research and the
evaluation of the justified business case, in real terms the Council has run
little risk financially or in terms of legal liabilities to date.
19.
The real future risk comes to the Council as both the
Local Authority and landowner in the future, if for some reason Blakes of
Ventnor should run into difficulties and either during the development process
of the site or in some years hence, the business has to be dissolved. Given this were to happen during the
development process, then the Council would be faced with two possibilities.
Firstly is the prospect of alternative use of the building and no doubt this
could be well worth exploring at the time should the matter arise. Alternatively, given any new facilities have
to be removed from the site and given the leaseholder or his successor has
little or no resources, then the demolition and clearance of the new wharfage
could present the Council with a liability estimated at £40,000, based on
present costs.
20.
Members will be aware that there is a proposal for a
new slipway to come forward at Ventnor Haven.
Whether or not this slipway is funded and progressed and the Fishermens
Wharf and processing plant could proceed without that slipway.
21.
As indicated above, any development on this site will
require good design and quality to building and to that end, Blakes of Ventnor
have been in numerous discussions with Planning Officers, clarifying the
standards to be sought by the Council and the best way to develop this unique
location.
|
RECOMMENDATIONS 22.
That the Council grants an option to a long lease to
Blakes of Ventnor, being for a term of 125 years for the proposed Fishermens
Wharf and food processing plant at Ventnor Haven on the terms set out in this
report and that the Council completes a deed of release of covenant if
required. |
BACKGROUND
PAPERS
23.
None.
24.
Ventnor Eastern Esplanade Regeneration application for
funding to South East England Development Agency.
Contact
Point: Tony Flower, Head of
Property Services ' 3263
Decision :
..
Signed: .............................................................................................................................
Councillor
Reg Barry, Portfolio Holder for Resources
Date:
................................................................................................................................
Decision :
..
Signed:
.............................................................................................................................
Councillor
Terry Butchers
Date:
................................................................................................................................
Decision :
..
Portfolio Holder for Economic
Development, UK and EU, Regional Issues
Dated:
..
THE CALL IN PERIOD FOR THIS DECISION
EXPIRES AT 5.00 PM ON FRIDAY, 19 MARCH 2004.
THE DECISION CANNOT BE IMPLEMENTED UNTIL AFTER THAT DATE.
RECORD OF DECISION TAKEN
UNDER DELEGATED POWERS AT COUNTY HALL, NEWPORT, ISLE OF WIGHT ON WEDNESDAY 10 MARCH
2004
Present :
Mr R Barry, Portfolio Holder for Resources
Mrs T M Butchers,
Portfolio Holder for Sustainable Development Environment and Planning Policy
Mr H Rees,
Portfolio Holder for Economic Development, UK and EU, Regional Issues
Mrs E Dutton,
Committee Services
07/04 VENTNOR
HAVEN - PROPOSED FISHERMENS WHARF AND FISH FOOD PROCESSING PLANT
The Portfolio Holders considered granting a
long lease, subject to planning permission, of land at Ventnor Haven. Following the development programme agreed
by the Executive on 26 February 2002 together with the application
for funding from SEEDA for the regeneration of Ventnor Eastern Esplanade,
outline proposals had been put forward for the development of fish meat food
processing at Ventnor Haven with an estimated of cost £486,000. The proposal would play an important role to
enable the local fisheries industry to work alongside leisure and coastal protection
interests, safeguarding existing employment and create new employment
opportunities.
The terms of the lease were detailed in the
report together with the financial implications. Other options considered would be to advertise the site in the hope
of finding another competing developer to bring forward a comparable scheme, or
to do nothing and allow the fishing industry to progress independent of this
site which could lead to relocation off the Island.
DECISION TAKEN :
That an option of a long lease be granted
to Blakes of Ventnor, being for a term of 125 years for the proposed Fishermens
Wharf and food processing plant at Ventnor Haven on the terms set out in this
report and that the Council complete a deed of release of covenant if required.